GoAir denies merger talks with SpiceJet
25 Mar 2009
Low-cost carrier GoAir on Wednesday denied reports that it is in merger talks with SpiceJet, its larger rival in the Indian private aviation market. ''We are not looking at any kind of consolidation or merger with SpiceJet or any other airline. It's one of many rumours,'' GoAir chief executive officer Edgardo Badiali told reporters in New Delhi.
Airline executives, including Badiali, have been saying that said there would be consolidation amongst the bleeding carriers as they look to cut costs and get out of the red. Last year, former arch-rivals Jet Airways and Kingfisher Airlines joined hands to cut costs by sharing codes and crew and by joint management of fuel.
"It's a small village, India and the aviation industry. Every time there is somebody who is talking to somebody, there is rumour of a merger or alliance," Badiali said. He added that any such decision would have be taken by the promoters and shareholders of GoAir.
"A strategic investor is always an opportunity (but it) depends always on which conditions," Badiali said. "You can never exclude anything. You would be also stupid to exclude anything."
GoAir is part of the Wadia group, which also owns clothing retail company Bombay Dyeing and Manufacturing and the country's top biscuit maker, Britannia Industries. It plans to take its fleet to 20 by 2012, up from six currently, and Badiali said these plans are on track.
